Every year, the Oliver Wyman MRO survey showcases the trends that are seen as the major factors in market disruption. For example, in 2018 the top-rated disruptors are the growing presence of OEMs after market, aftermarket consolidation and technology advancement. However, it’s important to understand the exact definition of market disruption to better
David Edelman, an analyst at McKinsey and Co., defines market disruption as “a profound change in the business landscape that forces organizations to undergo significant transformation rather than steady incremental changes”. Historical examples include groundbreaking inventions such as the steam engine, rail travel, the telegraph, the automobile, the assembly line and the telephone. Each of these innovative stepping stones caused an upheaval in traditional business practices. Those quick to grasp their potential become new leaders, while those who stubbornly hold on to their old ways, can fall by the boards.
Market Disruption Examples in the Business World
More recently, disruptions to the business world have taken place in the form of the advent of the mainframe computer, the minicomputer, PC, Internet and the cloud. AOL, Blockbuster, Yahoo!, Radio Shack, Compaq and Borders have all failed as a result of their reluctance to adapt to the technological changes driving eCommerce, new retail or consumer trends.
Market disruption can be applied to more than just the consumer sector. The airline industry, for example, has experience the disappearance of many companies due to the rapid changes. These airlines include Pan Am, TWA, Virgin America, Swiss Air, US Airways, Air Berlin and Air Australia. A stubborn refusal to address disruption coupled with some management mis-steps and an industry behemoth can perish.
The Challenges of Industry Disruption within MRO
Disruption is a serious threat within the MRO space as well. A multitude of technological factors such as digital transformation, the Internet of Things (IOT), machine learning, artificial intelligence (AI), machine learning, predictive analytics and additive manufacturing (AM) are driving rapid change. It’s a tall order to attract the skillsets and build the infrastructure that is required to successfully implement these technologies. Those that master them effectively will be the ones leading the digital charge into the future. However, sometimes executives should be wary because it is easy to lose sight of how disruption may impact their business.
According to McKinsey, it’s important to determine how to incorporate these trends into an overall strategy and improve decision making. In many ways, the problem is worse for MRO executives due to the multifaceted nature of disruption in their industry. There are multiple technologies bringing real change to all aspects of MRO processes and workflows, but along with digitization also comes waves of disruption. The OEMs are also now invading the MRO space, resulting in consolidation. However, without a comprehensive look at the technology platform, it is difficult to consolidate the multitude of systems and technologies effectively.
iBASEt Solumina offers the best way for manufacturers and MRO providers to integrate their many systems in the face of market disruption. Its software seamlessly operates between IT systems such as CRM, ERP and BPM, and operational technology (OT) systems such as MES and other shop floor tools. As the glue between systems, it enables the digital transformation and offers a platform on which further disruptive technologies can interoperate.
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